Hedge fund makes Royal Mail investment

<p>A hedge fund has become a leading shareholder in Royal Mail.</p>

A UK hedge fund has made a major investment in Royal Mail stocks and is now one of the major shareholders in the organisation.

The Children's Investment Fund has spent around £286 million on a 5.8 per cent stake in the firm, which floated on the stock market earlier in the month.

Labour has criticised the move, stating that it shows the money from the sale of Royal Mail is going to big investors rather than members of the public, as it had predicted would happen.

Ian Murray, Labour's shadow minister for trade and investment said: "David Cameron's Royal Mail fire sale has seen the vast majority of shares going to big money investors in the City while the taxpayer is left short changed."

Shares in Royal Mail have rocketed in value since the company was floated on the London Stock Exchange earlier this month.

Having initially launched at 330p, stocks in the firm have risen to around the 500p mark and many investors have already taken their profits.

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